Insurance companies have for years offered a compelling tradeoff to their customers: they track your driving habits, you save up to 30 percent off your bill for driving safely. But researchers now say that consumers may be giving up too much privacy in the deal.

If you install the tracking device in your car, insurers like Allstate and Progressive can gather information about when you drive, your starts and stops and your speed.

To avoid spooking customer fears about Big Brother, most of these devices do not include GPS. But computer scientists say they don’t need GPS to get a pretty good idea of where you’ve been.

Are drivers worried their data could be used as evidence in criminal investigations or to catch philandering spouses? Nah. Surveys find that most people think highly of their skills behind the wheel. And they’d rather cut their rates than keep their privacy.

—Larry Greenemeier

[The above text is a transcript of this podcast.]

Share this Article:

ADVERTISEMENT

Scientific American is a trademark of Scientific American, Inc., used with permission